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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
*0104807180*
9706/21
ACCOUNTING
October/November 2009
Paper 2 Structured Questions
1 hour 30 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use a soft pencil for rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
DO NOT WRITE IN ANY BARCODES.
Answer all questions.
All accounting statements are to be presented in good style.
Workings must be shown.
You may use a calculator.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
For Examiner's Use
1
2
3
Total
This document consists of 13 printed pages and 3 blank pages.
IB09 11_9706_21/5RP
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1
Rahul and Shivam are in partnership. The partnership agreement provides that:
1
Rahul contributes two-thirds and Shivam one-third of the capital which is fixed.
2
Profits and losses are to be shared in the ratio of capital contributed.
3
Partners are to be credited with interest on capital at 10 % per annum.
4
Partnership salaries are to be credited to Rahul, $25 000, and Shivam, $30 000.
5
There will be no interest charged on drawings.
All transactions are made through the bank.
The following is a summary of the partnership bank account for the year ended
31 March 2009.
$
Bank balance at 1 April 2008
Cheques received from debtors
Cheques paid to creditors
Electricity
Rent and rates
Insurance
General expenses
New vehicles
Drawings Rahul
Shivam
Bank balance at 31 March 2009
600 000
25 000
34 000
14 500
14 000
60 000
25 000
30 000
$
5 000
805 000
810 000
802 500
7 500
On 1 April 2008 the partnership current account balances were:
Rahul
Shivam
$15 500 Cr
$500 Dr
The following information is also available:
Stock
Trade debtors
Prepaid rent and rates
Vehicles at net book value
Fixtures and fittings at net book value
Electricity owing
Trade creditors
© UCLES 2009
1 April 2008
$
45 000
52 000
3 000
40 000
30 000
5 000
35 000
31 March 2009
$
48 000
63 000
2 000
80 000
28 000
6 000
41 000
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3
REQUIRED
For
Examiner's
Use
(a) Calculate the fixed capital account balance for each partner.
[4]
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4
REQUIRED
(b) Prepare the trading, profit and loss and appropriation accounts for the year ended
31 March 2009.
[20]
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5
REQUIRED
For
Examiner's
Use
(c) Prepare Rahul's current account for the year ended 31 March 2009.
[6]
[Total: 30]
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2
The following is the receipts and payments account of the Rumbledethumps Bowling Club
for the year ended 30 September 2009.
Receipts
Payments
$
Opening balances
Cash
Bank current account
Bank deposit account
Subscriptions
Ordinary
Life
Café takings
Dinner dance
Greenkeeper's wages
Insurance
Furniture for clubhouse
Secretary's honorarium
General expenses
Clubhouse repairs
Band for dinner dance
Other dance expenses
Café refreshments
Café wages
Clubhouse rates
Closing balances
Cash
Bank current account
Bank deposit account
850
12 150
84 500
31 200
10 000
94 320
6 000
239 020
$
25 000
3 450
2 150
2 000
8 950
3 540
500
4 730
43 500
23 500
4 500
530
10 980
105 690
239 020
The following information is also available:
Other assets and liabilities of the club at 30 September
Clubhouse
Café refreshment stock
Creditors for café refreshments
Insurance prepaid
Rates accrued
Furniture and fittings
Subscriptions prepaid
Subscriptions due and unpaid
2008
$
120 000
9 500
6 700
430
900
26 200
2 200
2 800
2009
$
120 000
10 500
7 900
550
950
25 400
2 400
2 600
Life membership was introduced on 1 October 2008 when five life members were admitted
and paid $2000 each. It was decided that life membership should be accounted for
separately and credited to ordinary revenue over twenty years, in equal amounts.
Interest on the bank deposit account of $4500 for the year ended 30 September 2009 had
not been taken into account at the year end.
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7
REQUIRED
For
Examiner's
Use
(a) Prepare the café trading account for the year ended 30 September 2009.
[4]
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(b) Prepare the club
30 September 2009.
income
and
expenditure
account
for
the
year
ended
[10]
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9
(c) Prepare the club balance sheet at 30 September 2009.
For
Examiner's
Use
[12]
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(d) State two advantages and two disadvantages of using a receipts and payments
account instead of an income and expenditure account, in a non-trading organisation.
[4]
[Total: 30]
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BLANK PAGE
Question 3 is on the next page.
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3
Singh Ltd manufactures three products - Athol, Brose and Crowdie – selling at $3, $7 and
$4 respectively. The manufacturing process is the same for all products but each requires a
different quality of raw material.
Expected trading results for the six months ending 31 May 2010 are as follows:
Sales
Variable costs
Direct materials
Direct labour
(paid at $4 per hour)
Variable overheads
Athol
$
120 000
Brose
$
91 000
Crowdie
$
88 000
Total
$
299 000
48 000
52 000
27 500
127 500
20 000
40 000
108 000
13 000
39 000
104 000
22 000
11 000
60 500
55 000
90 000
272 500
20 000
292 500
Fixed costs
Estimated profit
6 500
REQUIRED
(a) Calculate the estimated number of direct labour hours needed to manufacture each
product, and in total.
[2]
(b) Calculate the estimated contribution per direct labour hour for products Athol and
Crowdie.
[4]
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(c) Calculate the number of units of each of the three products produced per direct labour
hour.
For
Examiner's
Use
[9]
Management has decided to cease production of Brose with effect from 1 June 2010.
REQUIRED
(d) State why management has decided to take this action.
[1]
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The demand for the remaining products is expected to be:
For
Examiner's
Use
Athol
60 000 units;
Crowdie 32 000 units.
Management has undertaken to continue production as follows:
(i)
switch the labour force from Brose to Athol and Crowdie:
additional labour may also be required;
(ii) the rate per hour for direct labour will be increased to $4.10 per hour;
(iii) selling prices per unit of Athol and Crowdie will be unchanged;
(iv) direct material costs per unit will be unchanged;
(v) the ratio of variable overheads to selling price for each product will be unchanged;
(vi) fixed costs will increase by 10 %.
REQUIRED
(e) Use the information above to prepare an estimated profit statement for the six months
ending 30 November 2010. Follow the layout used at the beginning of the
question.
[14]
[Total: 30]
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BLANK PAGE
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BLANK PAGE
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University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of
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